Europe's motorists are driving more kilometres for less money than a week ago, just over a fortnight after militant attacks in Saudi Arabia sent pump prices higher and fanned concern that petrol may hit record levels this summer.

In a boon for drivers taking to the road on holidays, prices in some European countries have fallen by up to four per cent in the past week.

Further price cuts are likely as retailers factor in sharply lower wholesale gasoline prices, analysts and industry groups said.

Still, while the recent price trend is downward, pump prices remain high and could rise again if oil supplies from the Middle East are severely disrupted, they said.

"It's going to be summer of uncertainty on petrol prices for motorists," said Gavin Hill-Smith, spokesman for the UK's Automobile Association.

Pump prices spiked in early June after militants on May 29 attacked western company oil offices in Saudi Arabia and killed 22 people.

This week's bombings of Iraqi oil pipelines halted the country's exports, serving as a reminder of oil supply insecurity, industry groups said.

International gasoline prices on the key Amsterdam-Rotterdam barge market have nevertheless fallen 20 per cent since they peaked at an all-time high of $470 a tonne on May 17.

Prices slumped after oil cartel Opec promised to pump more crude oil into world markets in July and August in an effort to rein in global high oil prices.

European pump prices, which are among the world's highest, are still a long way from matching the percentage slide on international markets.

In Germany, prices fell around two per cent over the past week. Average national pump prices in Europe's largest economy were at around €1.13 ($1.36) per litre for unleaded petrol at stations run by the four retail market leaders, specialist energy publisher EID in Hamburg said.

Prices had fallen from €1.15-€1.16 last week and were expected to keep a range of €1.13-€1.15 in the short term, the EID said.

EID recorded a 2004 high just above €1.20 at the end of May and prices around €1.085 at the start of the year.

"In our opinion, the high oil cost is now fully reflected in the petrol price, but if there are any violent incidents in the Middle East, oil might rise very quickly again," said Juergen Albrecht at the motorist association ADAC in Munich.

In the UK, pump prices averaged 81.81 pence ($1.5) a litre, down over a penny from the year high recorded two weeks ago at 82.82 pence, the UK's Automobile Association.

Supermarkets in the UK were leading the price cuts, and oil majors were expected to follow suit.

"I think it will come down further in the UK," said Jose Blanco, petrol price analyst at oil consultancy Wood Mackenzie/OPAL.

Profit margins for UK retailers were averaging 7.81 pence a litre last week, well above the six pence a litre that retailers consider profitable, Mr Blanco said. This gives retailers room to cut prices further, he said.

This week's price cuts follow UK Chancellor Gordon Brown's announcement in early June that government plans for a September fuel duty hike of nearly two pence a litre were under review due to high global oil prices.

Chancellor Brown's announcement led haulage companies to call off nationwide protests that had threatened to escalate into a repeat of the blockades that brought Britain to a standstill in September 2000. Prices peaked at 85.3 pence a litre in June 2000.

In the Netherlands, the pump price was around €1.2095 per litre, down nearly five cents or four per cent on the week earlier, Mr Blanco said.

Royal Dutch/Shell Group, which is the largest retailer in the Netherlands, has gradually lowered its fuel retail prices in the country following the drop in global oil prices over the past two weeks.

"Shell is leading the way in the Netherlands and sets the tone in fuel retail prices. Most of the other retailers have followed suit in lowering the prices," a Dutch energy analyst said.

Norway's gasoline prices fell to 9.5-9.8 crowns ($1.37-$1.42) a litre from a year-high of 10.4 crowns last week.

"Growing summer demand normally boosts prices, but the recent drop in oil prices seems to outweigh the effect of rising consumption," said Egil Otter, spokesman at the Norwegian Automobile Association.

Norwegian gasoline prices hit an all-time high in the summer of 2000 at 11.5 crowns per litre, prompting Norway to cut taxes.

In France, prices averaged €1.084 a litre, down from €1.106 the week earlier, Blanco said.

High prices in France for diesel, which is falling across the continent in line with gasoline, led French fisherman to protest by blocking entry to several marinas along France's Mediterranean coast in early June.